Fred Timmons, TSCPA Chairman John Sharbaugh, TSCPA CEO Bob Owen, TSCPA Managing Director, Regulation & Legislation

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  • Fred Timmons, TSCPA Chairman John Sharbaugh, TSCPA CEO Bob Owen, TSCPA Managing Director, Regulation & Legislation
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  • TSCPA Results
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  • What a Difference 2 Years Makes Money to spend More new legislators More conservative legislators More bipartisanship Republicans in charge, but more benevolent Democrats still opposed, but less disruptive House vs. Senate distrust
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  • TSCPA Legislative Agenda Changes to the Accountancy Act SDSI Sunset Renewal Margin Tax Recommendations Oppose Sales Taxes on Professional Services
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  • Accountancy Act Changes Senate Bill 228 (House Bill 608) Authored by CPAs Sen. Williams and Rep. Otto Strengthen accountant-client privilege by requiring a judge to sign a subpoena Make an exception to client confidentiality for PCAOB, Texas Securities Act and practice merger or acquisition negotiations Strengthen investigation confidentiality, including changes to the Texas Open Meetings Act Repeal exam provisions no longer relevant to the current computerized examination process Repeal the prohibition against waiver of fees and penalties
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  • Progress to Passage Cleared Senate committee Feb. 5 th Passed Senate Mar. 13 th Cleared House committee Mar. 19 th Passed House Apr. 25 th Sent to the governor May 1 st Signed by the governor May 10 th
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  • SDSI Sunset Renewal House Bill 1685/Senate Bill 208 Authored by Rep. Price and Sen. Whitmire Fifth-year scholarship issue SDSI Reforms modeled after TSBPA House committee hearing March 26 th Passed House committee April 2 nd Passed House April 23 rd Passed Senate committee April 30 th Passed Senate May 9 th Signed by the governor May 24 th Effective date September 1 st
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  • TSBPA SUNSET POSTPONED UNTIL 2019! Sunset Model Development
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  • Just because you do not take an interest in politics doesnt mean politics wont take an interest in you. From Pericles (430 BC)
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  • Bill Monitoring 1,047 bills reviewed 514 bills monitored Bill monitoring process Legislative Advisory Executive Committee Bill intervention Key Persons
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  • Monitored Bill Action HB 1756 by CPA Stephenson Eliminates peer review for Compilations and restricts what TSCPA can charge non-members Committee hearing Died in committee HB 1757 by CPA Stephenson Mandates two solo practitioners on TSBPA and requires all CPA positions on the board to be CPAs in public practice No committee hearing died in committee
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  • Monitored Bill Action (Contd) HB 3488 by Burkett GAAP exception for governments died in committee w/o hearing SB 176 by Carona to require public disclosure of all reports by state agency contractors fixed and passed HB 798 by Thompson to prohibit licensing agencies from denying a license due to a Class C Misdemeanors passed
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  • Monitored Bill Action (Contd) HB 87 by Callegari that would give non-certified and non-licensed accountants the opportunity to practice accounting We opposed and testified against at the hearing We worked with Callegari on extensive revisions Revisions were not completely satisfactory Bill voted from Committee We agreed to disagree Bill died in Calendars
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  • Other Stuff Infrastructure: water runs; roads blocked Public education funding and fundamentals Gun bills were debated all day on Saturday Prohibiting Medicaid expansion Texting while driving ban died in the Senate Transparency for political groups Perry veto Gambling loses again Craft beer distribution liberalized Payday lending regulation defeated
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  • The Important Stuff Pecan pie is the official State Pie of Texas Feb. 16 is Texas Homemade Pie Day Peach Cobbler is the official State Cobbler of Texas Shamrock St. Patricks Day celebration is the official St. Patricks Day Celebration of Texas Nacogdoches is the official Garden Capital of Texas The City of Canton is the Walking Capital of Texas The Small Town Christmas celebration in Bellville is the official Small Town Christmas Event in Texas The first week in May is Texas Bison Week Gregg County is the Balloon Race Capital of Texas The Kemps ridley sea turtle is the official State Sea Turtle
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  • AICPA Council Meeting May 19-21, 2013 Washington, D.C.
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  • Texas Council Delegation Currently 15 TSCPA members serve on AICPA Council One of the largest Council delegations in the country Council normally meets in full session twice a year in the Spring & Fall Every other year the Spring Meeting is held in Washington, DC and Council members conduct visits with their Members of Congress Our group met with 24 Congressional offices during our two days
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  • This Years Issues for Hill Visits Tax Reform Federal Financial Responsibility Mobile Workforce State Income Tax Simplification Tax Return Due Date Simplification Amending Municipal Advisors Registration Requirements Texas specific item TSCPA Federal Tax Policy Committees Analysis of proposals to repeal tax treatments of domestic oil and gas exploration & development
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  • Guiding Principles of Good Tax Policy
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  • Tax Reform AICPA and TSCPA do not take a position on what is the best solution for reforming the federal tax system We aim to provide unbiased facts and analysis to foster informed discussion We have consistently supported tax reform simplification efforts because we are convinced it will significantly reduce taxpayers compliance costs, encourage voluntary compliance through an understanding of the rules, and facilitate enforcement actions
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  • Guiding Principles of Good Tax Policy Equity and fairness. Similarly situated taxpayers should be taxed similarly Note: Equity is best measured by considering a range of taxes paid, not by looking just at a single tax Certainty. Tax rules should clearly specify when and how a tax is to be paid and how the amount will be determined. Certainty may be viewed as the level of confidence a person has that a tax is being calculated correctly Convenience of Payment. A tax should be due at a time or in a manner that is most likely to be convenient for the taxpayer Economy of calculation. The costs to collect a tax should be kept to a minimum for both the government and the taxpayer Simplicity. Taxpayers should be able to understand the rules and comply with them correctly and in a cost-efficient manner
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  • Guiding Principles of Good Tax Policy Neutrality. The tax laws effect on a taxpayers decision whether or how to carry out a particular transaction should be kept to a minimum Economic growth and efficiency. A tax system should not impede productivity but should be aligned with the taxing jurisdictions economic goals Transparency and visibility. Taxpayers should know that a tax exists, and how and when it is imposed on them and others Minimum tax gap. A tax should be structured to minimize noncompliance Appropriate government revenues. A tax system should enable the government to determine how much tax revenue it likely will collect and whenthat is, the system should have some level of predictability and reliability
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  • The U.S. Governments Financial Statements and the Country's Fiscal Health
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  • The role of CPAs Serve as trusted advisors to a variety of organizations Help businesses and individuals achieve strong financial standing Protect the public interest Explain complex financial issues
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  • Federal budget
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  • Federal financial statements
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  • 2012 financial statements
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  • U.S. financial statements differ from other organizations Most financial statements show obligations or liabilities on balance sheet U.S. governments financial statements do not include Social Security and Medicare Footnote disclosures Not reflected as liabilities
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  • Reality of Future Obligations These Future obligations equal: Additional social insurance deficit - $52 trillion Cumulative deficit - $16 trillion Total Deficit - $68 trillion
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  • Key data in publicly traded companys financial statements
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  • In trillions 2009201020112012 $11.5 $13.5 $14.8 $16.1 Accumulated federal deficit
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  • Resources for the Public
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  • Court Rules Tax Preparer Registration Invalid IRS began an initiative in 2009 to require tax return preparers to register, prove their competency and take CPE to maintain their registration Also required all tax return preparers to obtain a PTIN (Preparer Tax Identification Number) and provide it on returns they prepare AICPA, TSCPA and other state societies lobbied to have CPAs exempted from the testing and CPE provisions of the new registration scheme
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  • Court Overrules IRS In January, a federal judge in the U.S. District Court for the District of Columbia granted a permanent injunction to stop the IRS tax return regulatory program Suit was filed by